RBI’s Press Release on Digital Lending.

On August 10th, RBI issued a press release highlighting the Working Group (WG) recommendations to be followed by Regulated Entities (REs), Digital Lending Applications (DLAs), and Lending Service Providers (LSPs).

The WG was set up by RBI to study the digital lending landscape in India. Based on the results of the study, WG released suggestions that focused on customer protection, technological requirements, and regulatory framework.

Key highlights of the press release
  • Loan disbursals and repayments should be between the borrower’s bank account and the lenders without any third-party pool account involvement.

  • REs must directly pay the fees and charges to LSPs and not charge the borrower

  • Before signing the loan contract, the borrower must be given a Key Fact Statement (KFS)

  • A change in credit limit should be based on the borrower’s prior consent

  • Borrowers can exit digital loans during the cooling-off period

  • Borrower complaints should be resolved by a nodal grievance redressal officer in 30 days

  • Only essential data should be collected from the borrower with explicit consent

  • All lending activities must be reported to Credit Information Companies (CICs)

  • Apart from these recommendations, there are a few more things that are under examination.

    Watch this space for more!

news2 news2 news2

Growth of digital lending industry in India

news2 news2

Credit Underwriting - How Alternative Data Sources Help


Pros and Cons of Payroll Cards


Anatomy of Payment Card Transactionsin Ecommerce


RBI has taken steps to promote rupee as the preferred currency for global trade


Easebuzz gets in-principle approval from RBI for Payment Aggregation Authorization


Mumbai to play host to the world's largest fintech conference, Global Fintech Fest


Wealthtech startup Dezerv has secured $21 Mn in Series A funding round led by Accel


ONDC inks MoU with SIDBI to onboard small businesses to its network


We're stoked to announce our collaboration with IndusInd Bank. As the first of its kind in India, the bank will use our analytics-backed technology to provide hyper-personalized services across payment and lending verticals. Know more.


People First HR Excellence Awards has recognized M2P Fintech as a winner in the category of 'Lending Practices in Diversity & Inclusion Initiatives,' and Clement D., Head of the People Success Team, has bagged the prestigious 'CHRO of the Year' award!


Madhusudanan R, our co-founder and Vaanathi Mohanakrishnan, Business Head – MENA attended the Fintech Saudi Accelerators Demo Day. They participated in the graduation ceremony alongside 12 brilliant start-ups. Catch its glimpse here.

That's it for now. See you again soon with all the need-to-know fintech updates!

Stay tuned. Stay curious.